Adani Transmission's (ATL's) announcement of signing a binding agreement with Reliance Infrastructure (RInfra) for buying the latter's 100 per cent stake in the Mumbai power business lifted Street sentiment. The ATL stock was locked in the upper circuit (no sellers) in the last half hour of trade, and closed with a gain of 10 per cent at ~225.25 on Thursday.The Street enthusiasm seems justifiable. The acquisition gives ATL an entry into the more profitable power distribution business and in a large and enviable market. Although growth rates are not high, the Mumbai power distribution business offers stable revenue and profit. Once complete, ATL will emerge as a diversified player, with presence across the power value chain-generation, transmission and distribution. R-Infra also has power generation capacity at Dahanu (500 Mw) in Maharashtra, feeding the Mumbai circle, part of the deal.Analysts say while distribution is more profitable compared to the transmission business, it is also .
